A comparison of hedonic price and stated preference methods to derive monetary values for aircraft noise disturbance and annoyance

A comparison of hedonic price and stated preference methods to derive monetary values for aircraft noise disturbance and annoyance

A comparison of hedonic price and stated preference methods to derive monetary values for aircraft noise disturbance and annoyance

This paper compares the hedonic prices and stated preference methods for determining monetary values of aircraft noise disturbance and annoyance used in cost-benefit analyses of proposed development. The data suggests that neither method is entirely satisfactory on its own, but there are strong positive correlations between the two methods suggesting sufficient underlying similarities to justify the use of combined methods in the future. These findings are importanht because the two methods normally yield different results in absolute terms and economists have consequently and un-necessarily been constrained to choose between them.

Abstract

This paper compares the hedonic prices and stated preference methods for determining monetary values of aircraft noise disturbance and annoyance used in cost-benefit analyses of proposed development. The data suggests that neither method is entirely satisfactory on its own, but there are strong positive correlations between the two methods suggesting sufficient underlying similarities to justify the use of combined methods in the future. These findings are importanht because the two methods normally yield different results in absolute terms and economists have consequently and un-necessarily been constrained to choose between them.